PwC fined more than $30 million

Source: Business Insurance

September 17, 2019 The Enforcement Directorate of India said that U.K.-based consulting firm PricewaterhouseCoopers LLP has been fined 2.3 billion Indian rupees ($32 million) for allegedly violating provisions of the Foreign Exchange Management Act, The Economic Times reports. An investigation revealed that PwC and its functionaries allegedly received nearly $50 million of foreign investments in the guise of grants. “During the course of investigation it was revealed that PwC had received $4,98,42,747/ equivalent to Rs 229 crore as purported grants from PricewaterhouseCoopers Services BV. The funds so received as ‘grants have been utilised for various business purposes including acquisition of other Indian companies and paying non-compete fee and accordingly a complaint was filed,” said the agency. The adjudicating authority during the course of adjudication had held the company guilty of violation of section 10 (6), 6(2), 6(3) and 9 (b) of FEMA, for receiving investments in the guise of purported grants in non permitted sector without the approval of government or RBI and imposed penalty of Rs 230 crore on PwC Pvt Ltd and other penalties on office bearers of companies including past and present chairman and directors, the agency said.